CBDT issues guidelines on Vivaad se Vishwas: Key points

The Direct Tax Vivad se Vishwas Scheme (DTVSV), 2024, is an initiative introduced under Chapter IV of the Finance (No. 2) Act, 2024, to resolve income tax disputes efficiently. With Circular No. 19/2024 issued on December 16, 2024, the CBDT provided detailed guidance for implementing this scheme.

Circular No. 19/2024 issued on December 16, 2024

Key Features of the Scheme

Aspect	Details
Objective	To reduce litigation, provide certainty, and generate timely revenue.
Commencement	The scheme started on October 1, 2024.
Deadline for Declaration	Lower rates applicable if declaration filed by December 31, 2024; higher rates apply after this date.
Payment Deadline	Payment must be made within 15 days of receiving Form-2 (intimation of tax payable).
Eligible Appeals	Appeals pending as of July 22, 2024, including those disposed of after declaration filing.

Eligibility Criteria

Appeals Covered

Scenario	Eligibility
Appeals pending as of July 22, 2024	Eligible even if the appeal is disposed of after declaration filing.
Appeals admitted after delay condonation	Eligible if filed with condonation application on or before July 22, 2024, and subsequently admitted.
Intimation under Section 143(1)	Appeals against such intimation are eligible.
Appeals against penalty unrelated to quantum	Eligible for settlement.

Appeals Not Covered

Scenario	Eligibility
Search and seizure cases (Sections 153A/153C)	Excluded from the scheme.
Prosecution cases	Not eligible for the same assessment year, but eligible for other years not under prosecution.

Key Conditions for Settlement

Tax Payment Rates

Declaration Date	Tax Rates Applicable
On or before December 31, 2024	Lower rates apply.
From January 1, 2025 onwards	Higher rates apply.

Treatment of Taxes Paid

• Credit for taxes already paid before filing the declaration will be adjusted in the final settlement amount.

Clarifications on Penalty Appeals

Scenario	Clarification
Penalty imposed after quantum appeal settled	Waived under the scheme.
Independent penalty appeals (e.g., Section 271B)	Must be settled separately under the scheme.

Specific Cases

Appeals Related to TDS

Frequently Asked Questions (FAQs)

1. What happens to appeals disposed of after declaration filing?
   • Such appeals remain eligible for settlement under the scheme.
2. Are cases under prosecution eligible?
   • No, prosecution cases for the same assessment year are not eligible. However, other years not under prosecution may qualify.
3. Can penalties imposed after quantum settlement be waived?
   • Yes, penalties imposed after settling the quantum appeal are waived under the scheme.
4. What happens if a declaration is filed for partial issues in an appeal?
   • Further clarification may be required as per specific cases.

Steps to File Declaration

Benefits of the Scheme

Benefit	Details
Time-Saving	Quickly resolve disputes without prolonged litigation.
Cost-Effective	Save on legal expenses and penalties.
Certainty	Gain clarity on tax liability with no further litigation.
Immunity	Avoid penalties and interest for settled cases.

Conclusion

The Vivad se Vishwas Scheme, 2024, is a significant step toward reducing tax litigation and ensuring smoother compliance. Taxpayers are encouraged to evaluate their disputes and take advantage of this scheme before the deadlines. For further details, refer to Circular No. 19/2024 or consult your tax advisor.